Tourism revenues in China experienced a significant surge of 47.3% year-on-year during the eight-day Lunar New Year holidays, exceeding pre-COVID 2019 levels. The data released by the Ministry of Culture and Tourism showcase a domestic travel boom that contributed to this impressive growth. This surge in tourism revenues comes as a temporary relief to policymakers amid deflationary risks in the economy due to weak consumer demand.
While the tourism boost during the Lunar New Year holidays has been substantial, the sustainability of this growth remains uncertain. As China’s economy continues to grapple with various challenges such as a property downturn and sluggish demand, policymakers are faced with the task of balancing stimulus measures to support growth while also addressing deflationary pressures. The upcoming months will be crucial in determining whether the tourism sector can maintain its momentum.
Domestic tourism spending saw a remarkable jump of 47.3% during the holiday period, reaching 632.7 billion yuan ($87.96 billion). This surge in spending reflects the pent-up travel demand among Chinese citizens after the disruptions caused by the COVID-19 pandemic. The number of domestic trips taken during the holidays also experienced a significant increase of 34.3% compared to the previous year, totaling 474 million trips.
In addition to domestic travel, international travel also showed signs of recovery during the Lunar New Year holidays. China witnessed around 13.52 million inbound and outbound trips, marking a growth of 2.8 times from the same period last year. The total entry-exit trips during the holidays returned to 90% of the levels seen in 2019, indicating a gradual return to pre-pandemic travel patterns.
The holiday period also saw a significant boost in the entertainment sector, particularly in film watching. China’s box office revenue surpassed 8 billion yuan over the eight days, setting a new record high. This surge in entertainment spending further underscores the resilience of the Chinese consumer market despite the economic challenges faced by the country.
The surge in tourism revenues during the Lunar New Year holidays highlights the resilience of China’s domestic travel sector and the pent-up consumer demand in the country. While the growth in tourism spending provides a temporary relief to policymakers, the sustainability of this boost remains uncertain. As China continues to navigate through economic challenges, the tourism sector will play a significant role in driving growth and supporting the overall recovery of the economy.